Hundreds of jobs are at imminent risk at the British arm of the iconic casual dining chain TGI Fridays, as its new owner prepares a drastic financial restructuring plan.
Pre-Pack Administration Looms for Restaurant Chain
Sky News has learned that Sugarloaf TGIF Management, which acquired control of the chain just two months ago in November 2025, is finalising a pre-pack administration deal expected to be executed as soon as next week. This type of insolvency process involves a buyer being lined up for a company's assets, free of its financial liabilities, immediately after administrators are appointed.
The move will likely result in the permanent closure of a substantial number of the chain's 49 UK restaurants. Insiders indicate that between 15 and 20 sites could be axed, though the final number remains under discussion. The deal could still face delays beyond the anticipated timeline.
Significant Job Losses and Sector-Wide Blow
If the plan proceeds, it will directly lead to hundreds of redundancies from TGI Fridays' UK workforce of nearly 2,000 employees. The appointed administrator is expected to be Interpath Advisory, which had two notices of intention to appoint filed in the days before Christmas.
A company spokesperson stated on Friday 2 January 2026: "TGI Fridays UK is still assessing all options for the future of the business. No decisions have been made yet and locations continue to operate as usual."
A Troubled History and Wider Sector Crisis
This crisis marks another severe blow to the UK's struggling hospitality industry. Sector leaders have repeatedly criticised the impact of tax policies, including national insurance changes, from Chancellor Rachel Reeves's Budgets in 2024 and 2025.
The chain's recent history has been turbulent. Sugarloaf TGIF Management, led by the chain's former CEO Ray Blanchette, purchased it only weeks before putting it up for sale again. The previous owners, Breal and Calveton, were said to have stabilised the business after acquiring it from London-listed Hostmore. Hostmore itself had overseen a previous insolvency filing for the chain in 2024, when it traded from close to 90 UK sites—nearly double its current estate.
The company has declined to comment further on the specifics of the potential pre-pack deal.
